HealthEquity (HQY) shares are set to open sharply lower in pre-market trading, plummeting 14.74% following the release of disappointing fourth-quarter earnings and weak fiscal year 2026 guidance. The health savings account (HSA) administrator's performance fell short of analysts' expectations, triggering a significant sell-off among investors.

The company reported adjusted earnings per share of $0.69 for the fourth quarter, missing the analyst consensus estimate of $0.72. While this represents a 9.52% increase from the same period last year, it wasn't enough to satisfy investor expectations. Revenue for the quarter came in at $311.817 million, surpassing the $306.053 million estimate, but the bottom-line miss overshadowed this achievement.

Adding to investor concerns, HealthEquity's outlook for fiscal year 2026 disappointed Wall Street. The company expects adjusted earnings per share between $3.57 and $3.74, with the midpoint falling below the $3.71 analysts had projected. Similarly, the revenue guidance of $1.28 billion to $1.31 billion also came in slightly below market expectations. Despite reporting growth in key metrics such as HSA accounts and total HSA assets, the weaker-than-anticipated earnings and guidance have spooked investors, leading to the significant pre-market plunge.